The Finance expands operations

The Finance Company PLC, has seen an improvement in all business areas over the past quarter despite the adverse situation prevalent in the market due to the tight liquidity and challenges faced in the motor vehicle market, a company spokesman said.

"Although the company could not achieve the planned growth due to certain external factors, the confidence placed by the customers has ensured that the company has kept abreast in the challenging market environment, sustaining its momentum."

"Financial investments have recorded a growth of 15 percent over the last quarter. The pawning business recorded a growth of 21 percent in average stock over the corresponding period, justifying the decision to open more pawning centres during this period. The Real Estate division has seen progress during this period with an overall growth of 43 percent in sales," he said.

"TFC owns a large extent of real estate comprising housing and land of commercial value that is being disposed rapidly as a result of the stabilised market conditions in the real estate sector, which will result in higher profitability for the company.

New deposits have grown 28 percent over the last quarter along with an increase of nine percent in savings deposits."

"A factor that has contributed to this trend has been the importance placed by the management on providing a better service to its loyal customers. The branch expansion which commenced in early 2011 resulted in The Finance branches growing in their roles to serve their communities more conveniently," the spokesman said.

"Recently, the Galle and Badulla branches were modernised while the Kurunegala, Hatton and Kiribathgoda branches were moved to more convenient locations. The Piliyandala, Negombo, Thambuttegama and Welimada branches will be relocated to more strategic locations soon.In addition to the backing of prominent state banking institutions such as People's Bank, Bank of Ceylon and also Seylan Bank as the key shareholders of the company, the financial regulator, the Central Bank of Sri Lanka has also continued its patronage and support to its endeavours. The company will expand operations even further with a fresh infusion of capital and are in discussions with investors interested in partnering TFC, one of the first registered finance firms in Sri Lanka, will have a major impact on the future profitability of the company" he said.

"Projections have been done for the next five years to wipe off the negative net worth with the intended capital infusion to ensure profitable levels in its business operations.

The company's strategic plan will be developed in line with the recommendations of a consultancy firm to regain its position as the market leader with a strong balance sheet within a reasonable period of time.The company will also launch the TFC Advantage Card, to be presented to its fixed deposit customers with benefits from a range of merchants to compliment their lifestyles.

TFC will launch a Debit Card for Savings Account holders jointly with a leading bank in December.